Discounted Cash Flow (DCF) Analysis Levered
The Procter & Gamble Company (PG)
$146.11
+2.32 (+1.61%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 65,058 | 66,832 | 67,684 | 70,950 | 76,118 | 79,183.84 | 82,373.17 | 85,690.96 | 89,142.38 | 92,732.81 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 12,753 | 14,867 | 15,242 | 17,403 | 18,371 | 17,900.40 | 18,621.38 | 19,371.41 | 20,151.64 | 20,963.30 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,384 | -3,717 | -3,347 | -3,073 | -2,787 | -3,753.46 | -3,904.64 | -4,061.91 | -4,225.51 | -4,395.70 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 9,369 | 11,150 | 11,895 | 14,330 | 15,584 | 14,146.94 | 14,716.75 | 15,309.50 | 15,926.13 | 16,567.59 |
Weighted Average Cost Of Capital
| Share price | $ 146.11 |
|---|---|
| Beta | 0.386 |
| Diluted Shares Outstanding | 2,601 |
| Cost of Debt | |
| Tax Rate | 18.79 |
| After-tax Cost of Debt | 1.25% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 4.711 |
| Total Debt | 32,619 |
| Total Equity | 380,032.11 |
| Total Capital | 412,651.11 |
| Debt Weighting | 7.90 |
| Equity Weighting | 92.10 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 65,058 | 66,832 | 67,684 | 70,950 | 76,118 | 79,183.84 | 82,373.17 | 85,690.96 | 89,142.38 | 92,732.81 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 12,753 | 14,867 | 15,242 | 17,403 | 18,371 | 17,900.40 | 18,621.38 | 19,371.41 | 20,151.64 | 20,963.30 |
| Capital Expenditure | -3,384 | -3,717 | -3,347 | -3,073 | -2,787 | -3,753.46 | -3,904.64 | -4,061.91 | -4,225.51 | -4,395.70 |
| Free Cash Flow | 9,369 | 11,150 | 11,895 | 14,330 | 15,584 | 14,146.94 | 14,716.75 | 15,309.50 | 15,926.13 | 16,567.59 |
| WACC | ||||||||||
| PV LFCF | 12,969.67 | 12,918.47 | 12,867.48 | 12,816.69 | 12,766.10 | |||||
| SUM PV LFCF | 67,195.04 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.44 |
| Free cash flow (t + 1) | 16,898.95 |
| Terminal Value | 692,579.73 |
| Present Value of Terminal Value | 557,359.57 |
Intrinsic Value
| Enterprise Value | 624,554.61 |
|---|---|
| Net Debt | 22,331 |
| Equity Value | 602,223.61 |
| Shares Outstanding | 2,601 |
| Equity Value Per Share | 231.54 |